Two kinds of incentive strategies, cost-sharing and penalty, are examined in dealing with production disruption, consideration process reliability as an endogenous factor for a two-echelon supply chain. Based on the Stackelberg game framework, we derive optimal decisions chain partners compare their expected profits different strategies. Considering uncertain demand retailer’s preference agains...

We study a single-product single-location inventory system under periodic review, where excess demand is lost and the replenishment lead time is positive. The performance measure of interest is the long run average holding cost and lost sales penalty. For a large class of demand distributions, we show that when the lost sales penalty becomes large compared to the holding cost, the relative diff...

Supply contracts are designed to minimize inventory costs or to hedge against undesirable events (e.g., shortages) in the face of demand or supply uncertainty. In particular, replenishment terms stipulated by supply contracts need to be optimized with respect to overall costs, profits, service levels, etc. In this paper, we shall be primarily interested in minimizing an inventory cost function ...

In this paper, a modiied version of the receding horizon control of nonlinear systems is proposed. The new approach is based on a nite horizon optimal control problem with an end point penalty. This method can be treated as an extension of recent results of De Nicolao et al. to the case where a globally stabilizing control law is available. Similar to the afore mentioned result, the end point p...

This paper studies the equilibrium predatory practices that may arise when the borrowers have behavioral weaknesses. Rational lenders offer short term contracts that can be renewed at the cost of paying a penalty fee. We show how the optimal contracts depend on the degree of näıveté of the time inconsistent customers. Penalty fees have a dual role : they increase market share by providing a use...

0360-8352/$ see front matter 2012 Elsevier Ltd. A http://dx.doi.org/10.1016/j.cie.2012.10.002 q This manuscript was processed by Area Editor T.C ⇑ Corresponding author. Tel.: +886 3 5131472; fax: E-mail addresses: [email protected] (K.-T. Fan (B.M.T. Lin). Traditional research on machine scheduling focuses on job allocation and sequencing to optimize certain objective functions that are defin...

Stereo matching generating accurate and dense disparity maps is an indispensable technique for 3D exploitation of imagery in the fields of Computer vision and Photogrammetry. Although numerous solutions and advances have been proposed in the literature, occlusions, disparity discontinuities, sparse texture, image distortion, and illumination changes still lead to problematic issues and await be...

We implement optimal economic outcomes at the lowest social cost by combining reputation and contracting mechanisms to overcome the time-inconsistency problem of monetary policy associated with an inflation bias. We characterize the conditions under which the reputation force alone induces a central bank to behave in a socially optimal way. When these conditions fail, an incentive contract is i...

We implement optimal economic outcomes at the lowest social cost by combining reputation and contracting mechanisms to overcome the time-inconsistency problem of monetary policy associated with an inflation bias. We characterize the condition under which the reputation force alone induces a central bank to behave in a socially optimal way. When this condition fails, an incentive contract is inv...